Financial Regulatory Forum

ECB says can’t bail out Greece, sees contagion risk

By Boris Groendahl and Terhi Kinnunen

VIENNA/HELSINKI, Feb 9 (Reuters) – Greece must get its own house in order itself as the European Central Bank cannot bail it out, two ECB policymakers reiterated on Tuesday.

“Greece, being a euro country, is under the regime of euro regulations, and so the main policy approach is of course that they have to solve the problems themselves,” ECB Governing Council member Ewald Nowotny said in an interview.

“The ECB have a clear mandate … we have a clear no-bailout clause,” Nowotny said in an interview with FT Alphaville, a blog published by the Financial Times newspaper.

Fellow Governing Council member Erkki Liikanen told Finnish broadcaster YLE: “We wait and trust that Greece will carry out those actions it announced last week.”

“It is very important that we follow the stability pact guidelines and that all countries get their debt under control. Otherwise rates will rise and it will make paying back debt more difficult,” Liikanen said.

France worried about euro, wants G20 discussion

By Anna Willard
PARIS, Sept 23 (Reuters) – France is concerned about the level of the euro against other currencies and hopes the Pittsburgh G20 will set a timeframe for a future discussion on exchange rates, a French government official said on Wednesday.

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China asks G8 debate on reserve currency – sources

(This story is without a dateline to protect the identities of the sources) 

Flags of G8 nations.    (Reuters) – China has asked to debate proposals for a new global reserve currency at next week’s Group of Eight summit in Italy and the issue could be referred to briefly in the summit statement, G8 sources said on Wednesday.   (more…)

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